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    1. Management

    SEPTA releases first Transformation Office Annual Progress Report

    March 29, 2023
    The report details the progress made in the first year of the Efficiency & Accountability Program, a systematic approach to identifying and implementing process efficiencies and cultural improvements.
    Related To: Southeastern Pennsylvania Transportation Authority (SEPTA)

    The Southeastern Pennsylvania Transportation Authority (SEPTA) released its first Transformation Office Annual Progress Report, which details the progress made in the first year of the Efficiency & Accountability (E&A) Program, a systematic approach to identifying and implementing process efficiencies and cultural improvements.

    The E&A Program launched in 2020 as a grassroots framework to brainstorm, evaluate, prioritize and implement employee-driven efficiency initiatives while simultaneously improving collaboration. The program’s inaugural transformation plan is comprised of 140 initiatives collectively estimated to have $102 million in recurring annual benefits after a full three-year implementation cycle. 

    At the conclusion of the first year, SEPTA has recognized $38.3 million in annual recurring benefits – nearly 38 percent of the plan’s total estimated benefits. 

    “Under the direction of SEPTA’s Transformation Office, the Efficiency & Accountability Program is developing and implementing strategies to drive organizational efficiency, productivity and accountability,” said SEPTA Board Chairman Pasquale T. Deon Sr. “These cost-saving and revenue-generating opportunities are helping to put SEPTA on a more stable financial footing.” 

    The benefits will not fix SEPTA’s financial challenges themselves. Upon exhaustion of federal COVID relief, SEPTA will reach a fiscal cliff at the end of Fiscal Year (FY) 2024. The authority will have to reduce spending beginning in FY 2025 in order to make up for the expected budgetary deficit, which is currently projected to be approximately $270 million, or 15 percent of annual operating expenses. 

    “Traditional cost reduction measures are only able to delay the inevitable, so SEPTA opted to reimagine our service, operations and ability to innovate in order not only to survive, but to thrive,” said SEPTA CEO and General Manager Leslie S. Richards. “Through our Efficiency & Accountability Program, we set the authority on a path for financial sustainability, as well as to make SEPTA a better place to work for our employees, create an improved experience for our riders and elevate the positive impact we have on our community.”   

    The full Annual Progress Report is available on SEPTA’s website.